Brinker International (EAT) investor relations material

Executive summary

• Total revenues for Q1 2026 rose to $1.35 billion, up 18.4% year-over-year, driven by Chili's same-store sales up 21.4% and traffic up 13%, while Maggiano's comp sales declined 6.4%.

• Net income increased to $99.5 million from $38.5 million, with diluted EPS up to $2.17 and adjusted EPS at $1.93.

• Operating income more than doubled to $117.9 million, reflecting improved sales leverage and cost management.

• The company continues to gain market share, especially among households with income under $60,000, and maintains strong guest retention across all cohorts.

• $92 million of common stock was repurchased during the quarter.

Financial highlights

• Adjusted diluted EPS was $1.93, up from $0.95 last year; net income per diluted share was $2.17.

• Adjusted EBITDA reached $172.4 million, a 54.4% increase year-over-year.

• Restaurant operating margin improved to 16.2%, up 270 basis points year-over-year.

• Food and beverage costs rose 60 basis points due to unfavorable mix and 2.6% commodity inflation, offset by price.

• Labor costs improved by 120 basis points, offsetting wage inflation of 3.8%.

Outlook and guidance

• Fiscal 2026 guidance reiterated: total revenues expected between $5.60–$5.70 billion, with Chili's expected to beat original goals, offset by Maggiano's softness and higher commodity tariffs.

• Net income per diluted share (excluding special items) projected at $9.90–$10.50.

• Commodity inflation now expected in the mid-single digits, up from low-single digits.

• Q1 is anticipated to be the strongest year-over-year, with same-store sales normalizing to mid-single digits for the rest of the year.

• Restaurant operating margins are expected to be flat to slightly positive for the year, with Q2 facing the most pressure due to Maggiano's and timing of expenses.